Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

RTD Tea in Russia

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Executive Summary

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

PROSPECTS

RTD tea registers growth for first time since 2014

Since the crisis in 2014, RTD tea has registered a decline in both volume and value terms in Russia. However, in 2018, the area finally recovered, seeing an increase in demand.

New product developments and flavours boost demand

While there were no major new product developments within RTD tea in 2017, this changed in 2018. The leading Lipton brand from PepsiCo launched its new “Po russki” line of traditional flavours such as blueberries and sea-buckthorn.

Healthy positioning and natural composition to drive sales

The health and wellness trend, as well as growing awareness of sugar consumption, are creating demand for healthier refreshment drinks in Russia. There is a lack of brands that are positioned as being healthy and natural in the area, with producers expected to introduce healthier alternatives to carbonates, strongly supported with active marketing and promotional strategies.

COMPETITIVE LANDSCAPE

Leading player Lipton continues to register growth in 2018

RTD tea is highly competitive, with sales being consolidated among a limited number of international companies and Lipton from PepsiCo continuing to dominate sales. Limited promotional support for Coca-Cola’s Nestea in 2017 created favourable conditions for Lipton to increase distribution.

Big changes for Nestea impact competitive landscape

Nestea saw a wide range of changes in 2018, with brand owner Nestlé passing distribution rights from Coca-Cola to Rosinka. This change negatively impacted volume sales of Nestea in 2018 given Coca-Cola’s much stronger distribution network.

Distribution key to success

With growing price competition, strengthening availability via retailers will be key to success over the coming years. While all three leading players offer well-known brands, availability via modern retail chains and traditional grocery outlets varies.

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